Nashville has become the #1 migration destination for New Yorkers seeking tax relief. NYC residents face 12.7% combined income tax (10.9% state + 3.876% city), while Tennessee charges 0% (Hall Tax eliminated 2021). At $100,000 NYC income: save $9,500/year in Tennessee. The trade-off: Tennessee has the highest combined sales tax in America (9.55%). Nashville offers Southern charm, music industry jobs, and a fraction of NYC's cost of living.

By CountryTaxCalc Research Team

Last Updated: April 2026

The Big Picture

🗽 New York

10.9%

High Tax State

Progressive + NYC tax

🎵 Tennessee

0%

No Income Tax

Hall Tax eliminated 2021

Typical Annual Savings

At $100,000 income:

$9,500

That is $792/month back in your pocket!

Tax Savings by Income Level

IncomeNY TaxTN TaxSavings10-Year
$50,000 $2,850 (NY state only)$0TN saves $2,850$28,500
$75,000 $4,600 (NY state only)$0TN saves $4,600$46,000
$100,000 (NYC) $9,500 (state + city)$0TN saves $9,500$95,000
$150,000 (NYC) $14,300 (state + city)$0TN saves $14,300$143,000
$200,000 (NYC) $19,500 (state + city)$0TN saves $19,500$195,000
$300,000 (NYC) $32,000 (state + city)$0TN saves $32,000$320,000

New York Pros and Cons

✅ Pros

  • World-class job market (finance, media, tech, law)
  • Public transit eliminates car costs ($8,000-12,000/year)
  • Cultural capital: Broadway, museums, dining, nightlife
  • Rent-controlled apartments protect long-term tenants

❌ Cons

  • Up to 12.7% combined tax (10.9% state + 3.876% NYC)
  • Average rent $3,500/month (Manhattan), $2,400 (outer boroughs)
  • Brutal winters require heated apartments
  • High cost of everything: food, childcare, services

Tennessee Pros and Cons

✅ Pros

  • 0% state income tax on all income (Hall Tax gone 2021)
  • Nashville housing: $425K median vs NYC $750K+ (condos)
  • Music industry hub: labels, studios, live venues
  • Healthcare industry HQ: HCA, Change Healthcare

❌ Cons

  • Highest combined sales tax in US (9.55% average)
  • Car-dependent: no real public transit alternative
  • Humid summers (90°F+ with high humidity)
  • Smaller job market than NYC
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships

Talk to a Real CPA

Taxhub

Moving from New York to Tennessee? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.

Get Matched With a CPA →

Frequently Asked Questions

Q: How much will I save moving from NYC to Nashville?

At $100,000 NYC income: save $9,500/year (10.9% state + 3.876% city tax eliminated). Over 10 years: $95,000. Tennessee's higher sales tax (9.55% vs NYC 8.875%) costs ~$300 more annually for average spenders. Net savings: roughly $9,200/year. Housing savings are even larger—Nashville rent is 50-60% less than Manhattan for equivalent space.

Q: Is Nashville good for finance workers from NYC?

Yes—AllianceBernstein relocated its HQ from NYC to Nashville in 2021, bringing 1,000+ finance jobs. Other firms have followed. Nashville's finance scene is smaller than NYC but growing rapidly. Many NYC finance workers keep their NYC jobs (remote) while living in Nashville, capturing both the salary premium and zero income tax. This is the optimal strategy for maximizing savings.

Q: What about the music industry in Nashville vs NYC?

Nashville is the country music capital, while NYC dominates pop/hip-hop/jazz. If you work in country, Christian, or singer-songwriter genres, Nashville is superior. The city has more studios per capita than anywhere else. However, NYC's music industry is more diverse. Many musicians split time between both cities—living in Nashville (no tax) and working gigs in NYC.

Q: Does upstate New York change the comparison?

Significantly. Upstate NY (Albany, Buffalo, Syracuse) has no city income tax—only the state's 6.85%-10.9% rates apply. A $100,000 upstate earner pays ~$6,500 vs ~$9,500 in NYC. The Tennessee advantage shrinks from $9,500 to $6,500. Upstate housing is also cheaper than NYC (and comparable to Nashville), so the overall financial case for moving to Nashville is weaker from upstate.

Q: Can I work remotely from Nashville for a NYC employer?

Yes—and this is the best strategy. If you work remotely from Tennessee for a NYC employer, you pay Tennessee taxes (0%), not New York taxes. Keep documentation proving you work from TN: home office, TN address, no regular commute to NYC. If you travel to NYC for work occasionally, those days may be taxed by NY. Consult a CPA specializing in remote work tax situations.

Related Comparisons

New York vs FloridaNew York vs TexasCalifornia vs TennesseeNew York CalculatorTennessee CalculatorAll Comparisons